This year's Hard Assets Conference was as big as they come. It always brings a ton of mining experts to the city. Enough time has passed for the information discussed there to be actionable, so now it's time to review the show.
The rise in precious metals prices in recent years reflects a world of increased uncertainty, just as it did in 1980 when gold last spiked. But whereas prices quickly fell again three decades ago, that has not been the case this time.
Tee co-founder of Technology Metals Research LLC, gives us the lay of the land in the rare earth sector. Many variables are shaping this developing market, and data makes the difference in determining viable investments.
The performance of junior resource stocks since 2008 is closely correlated to that of aluminum, lead and zinc. That makes sense, because base metals are sensitive to existing economic conditions and to the market's expectation of future economic growth.
Precious metals were definitely in the 'thick' of the 'buy everything!' storm of sentiment and short-covering panic this morning and obviously benefited from it as well. Gold touched highs near $1,722.
A fantasy of growing and infinite demand and inelastic prices (prices not driven by simple supply and demand) increasing without limit, has placed the most emphasis on those rare-earth juniors who say that they will produce in the near term.
After a big spike up and an overdue correction in the gold price, the chairman and CEO of Adrian Day Asset Management, says that the king of metals is settling back into the steady rise in price that we've grown accustomed to over the past several years.